The EUR/NZD 1-hour Forex swing trading strategy is designed to be entirely trend following in nature.
The strategy is set to maximize swing traders gains by following extended trends which have the potentials to last for days or even weeks.
One of the key advantages of this trading strategy, considering its approach is the likelihood for large profits.
Its ability to deliver candid money spinning signals to its users is what places this forex strategy high up ladder within its peers.
Asides being widely used to trade currencies in the forex market, commodity traders can also adopt this strategy to trade gold, crude oil, silver, etc.
MetaTrader 4 Indicators: Envelopes.ex4 (Parameters Modified; Period=36, Colors Modified; Upper Band=None), SuperWoodieCCI.ex4 (Colors Width Modified; #1=2, #2=2, #3=2, #4=2), BSTrend.ex4 (Inputs Variable Modified; period=19)
Preferred Time Frame(s): 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Recommended Trading Sessions: Any
Currency Pairs: EUR/NZD + any other pair
Buy Trade Example: EUR/NZD (EURO / New Zealand Dollar), H1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the price opens, closes and stays above the red line of the Envelopes Metatrader 4 indicator as exemplified on Fig. 1.0, bulls are said to be driving price higher i.e. a trigger to buy the designated fx pair.
- If the SuperWoodieCCI custom indicator pops up blue and lime green histograms above the zero reference level as shown on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert is said to be on the horizon.
- If the BSTrend indicator stacks up deep sky blue vertical bars above the zero horizontal level as seen on Fig. 1.0, price is said to be pressured to the upside, therefore a buy alert is said to imminent.
Stop Loss for Buy Entry: Place stop loss below previous swing low support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If during the course of a bullish trend price opens and closes below the red line of the Envelopes indicator, it is pointing to diminishing bulls power, therefore an exit or take profit stance is advised.
- If the SuperWoodieCCI custom indicator pops up a blue histogram below the 0.00 horizontal level while a bullish trend is ongoing, bulls power is said to be weaning, thus a trigger to exit or take profit immediately.
- If while a bullish trend is runningand BSTrend fx indicator pops up a violet vertical bar below the 0.00 signal level (see Fig. 1.0), more and more bulls are said to be leaving the market, hence a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the price opens, closes and runs below the red line of the Envelopes forex indicator as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish, thus a signal to go short on the stipulated currency pair.
- If the SuperWoodieCCI custom indicator pops up blue and red histograms below the zero horizontal level as depicted on Fig. 1.1, bears are said to be dragging price lower, as such a sell alert is in the offing.
- If the BSTrend indicator piles up violet vertical bars below the zero reference level (refer to Fig. 1.1), price is said to be pressured lower, therefore a sell alert is said to looming.
Stop Loss for Sell Entry: Place stop loss above previous swing high support.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price opens and closes above the red line of the Envelopes indicator, bears are said to be closing their positions increasingly i.e. an exit or take profit stance will suffice.
- If the SuperWoodieCCI custom indicator displays a blue histogram above the 0.00 horizontal level during the course of a bearish trend, selling pressures is said to be phasing out, hence an exit or take profit stance will do.
- If BSTrend fx indicator pops up a deep sky blue vertical bar above the 0.00 signal level during the course of a bearish trend (checkout Fig. 1.1), bears are said to be leaving the market in their droves, hence a trigger to exit or take profit straightaway.
Sell Trade Example: EUR/NZD (EURO / New Zealand Dollar), H1 Chart
About The Forex Technical Indicators Used
The Envelopes forex indicator is a technical tool that tries to spot the upper and lower bands of a trading range.
The SuperWoodieCCI is a widely held indicator that is based on the CCI, and it focuses on the current state of the market and how to trade based on it.
The BSTrend indicator is one of the most valuable trend finder that deploys colored bars within its indicator window to define bullish (deep sky blue) and bearish (violet) market sentiments.
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